When you’re planning significant work on your house, you want to hire a great remodeler who can bring your vision to life. Whether you're planning a kitchen upgrade, a bathroom refresh, or a full-scale basement overhaul, remodeling is about creating the perfect place to live, relax, and enjoy your home.
But while most people can wrap their heads around the project's vision, understanding all the legal aspects is more challenging. Details like permitting and contract wording are a lot more tedious, but they're an important part of the remodeling process.
Too often, we hear of homeowners who rush into a handshake deal or skim a vague contract only to be blindsided when things don't go as expected. Ultimately, having all the legal details in place before the project begins protects you as the homeowner. And in reality, it also protects whatever remodeling business you hire.
To prevent problems, I've prepared this guide, which is meant for any owner planning to hire a professional for construction and remodeling work. I'll touch on key topics like contracts, building codes, permits, inspections, and liability so that you can feel more confident and comfortable when planning your home remodeling project.
For remodelers and their clients, a quality contract is essential. The contract should cover major issues like the budget, construction process, and stipulations for all the work required to complete the job.
As a general rule, we recommend that the contract include as much detail as possible about the scope of the project. It may include information about labor and materials and their expected or average costs. However, the contract doesn't necessarily need to be an itemized list of costs. In fact, itemized contracts often provide a false sense of security for homeowners. A fixed-price remodeling project contract actually offers much more protection against unexpected costs.
Regardless, the important thing is to have a written contract and to read it carefully. I repeat: read it carefully. Skimming is not your friend in this situation. Don't feel rushed into signing, and make sure that anything important that you've discussed verbally is actually in the written contract.
As you read, make notes about anything that seems unclear to you, and don't be shy about asking questions. Feel a bit awkward or uncomfortable raising a question now? Just imagine how much more difficult it will be halfway through the project.
Local building codes determine what you're allowed to build (and what you aren't) and what regulations, including permit requirements, apply to your project. Keep in mind that these are driven by municipal codes, so you'll find different rules for Des Moines and West Des Moines, for example.
As you can imagine, this information is a lot to try to process if you're a homeowner and not a general contractor. It can be tricky to try to determine on your own if your idea for a bathroom remodel, kitchen overhaul, or home addition meets the local building codes.
Thankfully, an experienced design team can work through these issues with you and make sure that your plans are up to code, no matter how extensive the renovation.
You're going to need permits based on the nature of your remodeling project. Exactly what permits will be required depends on the work being done. Permits are often needed for plumbing, electrical, and HVAC work. Permits may also be necessary for things like demolition, removal of old materials, and remediation. Structural work, including many home additions, may need additional permits.
A quality remodeling company can make sure that your permits are secured properly, regardless of whether you're upgrading a basement space with new flooring, overhauling a bathroom, creating a new kitchen, installing a new roof, or building an in-law suite above your garage.
Your remodeler should have the expertise to know which permits to pull, and you should expect to see this aspect of the work reflected in the contract and budget.
Your home may need one or more inspections before the remodel is complete. In most cases, you'll have an inspection at the end to ensure that the final product is up to code. However, especially with extensive plumbing or electrical work, an inspector may need to examine the space earlier in the project in order to authorize the project to continue.
Liability is all about who is responsible if something goes wrong. This isn't something you want to leave up to chance, so only hire a contractor or remodeling business that has the documentation to show that they are licensed, bonded, and insured.
If you're wondering what that really means, here's a quick explanation:
Licensed: This means a contractor has met any relevant government requirements (such as exams or specific experience) to legally perform construction and remodeling work.
Bonded: Being bonded means the remodeler has purchased a surety bond that provides financial protection to the client if the contractor fails to complete the job or fulfill the terms of the contract. This bond is a safeguard against the costs of unfinished work.
Insured: An insured contractor should carry liability and workers’ compensation insurance. This protects you from being held responsible if there’s property damage or if someone is injured while on the job at your home.
If you've never done a major remodeling project before, you may not be familiar with the concept of a mechanic’s lien. In short, a lien is a legal claim that a contractor, subcontractor, or supplier can place on your home if they haven’t been paid for their work or materials.
This doesn't mean your remodeler is trying to take your house—but it does mean that unresolved payment issues can create legal and financial complications. A lien can prevent you from refinancing or selling your home until it’s resolved.
Now, here's the good news: most homeowners who pay their bills on time never have to worry about a lien being filed. That said, you might still see some lien-related paperwork—and that's completely normal.
In Iowa, contractors and suppliers often file something called a Preliminary Notice through the state's online registry at the beginning of a residential project. This notice doesn't mean anything is wrong—it's simply a way for them to preserve their right to file a lien in case they don't get paid later on. Think of it like setting up a safety net.
You may also be asked to sign or receive a lien waiver when you make a payment. This document confirms that the contractor (and sometimes their subcontractors) have been paid for the work completed so far and are giving up their right to file a lien for that portion of the job. It's a routine part of responsible project management and helps protect everyone involved.
If you are like most homeowners and pay your bills on time, you don't have to worry much about liens. However, there is still a risk if you hire a less reputable remodeler who doesn't pay their bills on time. Subcontractors, like plumbers and electricians, who aren't paid by your remodeler can file a lien on your home. It doesn't seem fair, but it's all the more reason to choose a well-established firm and look for lien release forms when you make a payment, especially the final payment.
Hiring a high-quality remodeling firm can make all the difference in your renovation. At the most basic level, they take care of all of the fundamental parts of the project, including design and construction. But they also handle legal processes like designing to meet code, pulling permits, and coordinating with inspectors.
A true professional upholds high standards for their work while maintaining ongoing communication to ensure that you're satisfied with the project. This not only creates a better final product but also reduces the likelihood that you'll have any misunderstandings about the work being done, the contract, or any other legal details.
In short, a great remodeler makes your home better and makes your life easier. In this way, they offer tremendous value that pays off for years to come.
Compelling Homes is a custom home remodeling firm that works through the greater Des Moines and West Des Moines area. Our entire team is dedicated to transforming your home in a way that suits your lifestyle and brings joy to you and your family.
We pride ourselves on innovative and thoughtful design, quality craftsmanship, and excellent customer service. We don't just want our clients to be satisfied with our work. We want to wow them and transform spaces so that your home gets amazing responses when friends or visitors walk through the door.
We follow the design-build process, which means we provide all the necessary services under one roof. Collaboration across our design, construction, and project management teams enables us to be extremely efficient, delivering projects on time and on budget.
If you're planning your next remodel, we'd welcome the opportunity to walk through the space with you and understand your vision. Contact us today to schedule a consultation, and let's talk about what we can accomplish together.